Study Reveals Disconnection Between Dealers' Customer Relationship Management Data And Actual Shopper Behavior

An analysis of over 4,700 car buyers from 42 dealerships nationwide showed material inconsistencies between the sourcing information dealers entered into their Customer Relationship Management (CRM) systems and car buyers' actual behavior, particularly in regard to the influence of the Internet in the car shopping process. A comparative analysis of CRM data and actual shopper behavior shows that the Internet is cited 3.5 times more by shoppers than it is recorded in dealership CRM systems.

These findings, revealed in a new white paper from AutoTrader.com called The CRM Paradox, are worth noting because many dealerships rely on CRM reporting to understand the effectiveness of their various advertising expenditures.

"Measuring the ROI of advertising sources is critical for dealers to ensure that their budgets are allocated effectively, and incorrect data entry into CRM systems results in dealers not getting the insights they need out of these tools," said Kevin Filan, Vice President of Customer Marketing at the site.

In addition to the severe gap between how often the Internet is cited by car buyers and how often it is recorded in CRM systems, the study also revealed that third-party automotive sites were cited 4.6 times more by car buyers as the source that brought them in, compared to the number of times these sites were credited in dealers' CRM systems.

In struggling to measure the effectiveness of online advertising, dealers have typically relied solely on metrics such as clicks, leads, and direct referrals from other sites to their dealership website, which only account for a small portion of measurable shopper activity. The white paper emphasizes the importance of proper sourcing in CRM systems, introducing the risk that inaccurate or missing information can be costly and potentially translate into mis-allocating their advertising budgets and therefore missing sales opportunities with in-market car shoppers.

Also included is information about the various avenues dealers use to advertise to car shoppers, and their respective influence on the process. Car buyers use multiple online and offline sources while shopping, but study after study, including those from Polk and J.D. Power and Associates, have shown that the Internet is the most used and/or most influential source in their shopping process.

Some recommendations on how dealers can develop an effective, dealership-wide CRM process are:

Develop a customized selection list by identifying lead sources based on a number of criteria that is specific to the individual store
Train staff on CRM policies and processes, including instruction on performing routine tasks
Enforce data quality standards
Improve internal communication

NAFA Fleet Management Association
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